Peru’s Government Sends Back for Revision a Bill to Amend the ISC Application

The draft, ratified by Congress earlier this summer, would also criminalise the falsification or manipulation of sports match outcomes. After feedback was received, the document was returned to Parliament for potential amendments or approval without any alterations.

Main Provisions and Commentaries

An official letter addressed to Congress and inked by Ms Boluarte and Eduardo Arana, the country’s Prime Minister, was attached. It states that the current ISC regulation for remote gaming and sports betting by international operators does not contain the legislative gaps mentioned by some niche brands.

Furthermore, the authorities highlighted that the suggested amendments to the IGV and ISC Law substantially decrease the taxable base.

Essential insights regarding this matter:

1. Necessity for additional alterations. Without simultaneously adjusting the rate itself, the bill acceptance could diminish fiscal revenues by 90–95%.
2. Reduced budget. Contributions to the treasury would fall to PEN 14–28 million annually, compared to the potential PEN 284 million at the current 1% fee level.
3. Social risks. Such a change would significantly weaken the tax mechanism's effectiveness in supporting population groups affected by gambling harm.

The Government expects Congress’s members to reconsider certain provisions of the bill and either fully accept the commentaries or submit a revised version of the document with alternative proposals.

Addressing the Issue of Sports Match Fixing

The Executive observed that categorising the falsification of event outcomes in this vertical as a criminal offence is inaccurate. Such actions are more appropriately classified as cyber violations.

The current regulation enacted by Congress designates manipulating match results to benefit from bets as computer misdeeds. However, the Government views these illegal actions as bribery-related crimes.